Eurozone services PMIs just rolled out for November: PMIs are major business surveys that try to give a hint at how an economy is performing, months before hard, official data comes out.
It’s not good news: businesses say economic growth is now at a 16 month low, with a PMI reading of 51.1. Last time the readings were this low, Europe was barely edging out of recession.
Markit, the firm that collates the PMI readings, says this suggests growth will be just 0.1% in the last quarter of the year, following the same result in the third quarter.
This is some of the last major data before the European Central Bank’s decisions and president Mario Draghi’s press conference on Thursday. If they’re weak, they’re going to heap more pressure on the ECB to ease their policies.
Any figure over 50 signals growth, while anything under 50 hints that the services sector is shrinking. Here’s how it broke down by country:
First out of the blocks is Spain: November’s PMI is down to 52.7. That’s the lowest in a year, down from 55.9 last month, and way lower than the 55.2 that was expected. Not a good start.
Italy comes next, beating expectations with a 51.8 reading. That’s an improvement on October’s 50.8 and much better than analysts expected.
France, Europe’s second-biggest economy, comes in with a PMI at 47.9, a nine month low. That’s after an October score of 48.3.
Lastly and probably most importantly, Germany’s PMI dropped to 52.1, the weakest in 16 months. In October, Germany’s services PMI was at 54.4. Analysts had expected a drop.
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